Top Global Real Estate Meccas

Epoch Times Staff

Thinking overseas real estate investments? Think London, Tokyo, New York, Hong Kong, and Paris. These top five cities together garner a quarter of global investments. And more than half of all global real estate investment resides in 30 cities, according to the latest report by Jones Lang LaSalle, a global real estate services firm.

Times are changing and investments are shifting, say analysts at the firm. By 2020, they predict investments will shift toward cities such as Beijing, Shanghai, Moscow, and Sao Paulo.

“We are already seeing a shift in where real estate investors are sending their capital,” said Peter Roberts, CEO of Americas, in a statement. “The top 30 cities for real estate investment will become the top 50 as investors diversify their portfolios and corporate occupiers expand their geographic footprints to include emerging cities. Advances in digital communications contribute to this expansion because companies will no longer have to physically cluster in some of the world’s largest cities.”

Nearly half of the world’s office stock is located in the United States and more than one-third of all commercial real estate investment takes place in U.S. cities, and they are expected to do well through 2020.

Topping the list with a significant lead over Tokyo is London, which has remained the top real estate investment since 2010, unperturbed by European financial turmoil.

“Aside from London, Europe’s other mega cities include Paris, Moscow, and Istanbul. They are truly global and offer diverse industries and sectors,” said Christian Ulbrich, CEO of Europe, Middle East, and Africa. “Other cities such as Munich and Stockholm offer strong real estate conditions and commitment to innovation, which will serve them well in a low-growth environment.”

“While investors are still choosing to invest in strong, stable and transparent cities, new destinations offer a new world of potential,” said Ulbrich. “As the world changes so rapidly, the real estate investment map will follow suit. Corporations will continue to assess their business locations, search for more value, and deepen their geographic reach. Investors will diversify their portfolios and begin to search for new cities for their investments in Asia Pacific and second- or third-tier cities in the West.”

Top 30 Cities by Real Estate Investment:

1. London ($43 billion)
2. Tokyo ($32 billion)
3. New York ($27 billion)
4. Hong Kong ($18 billion)
5. Paris ($18 billion)
6. Singapore ($15 billion)
7. Washington DC ($13 billion)
8. Seoul ($12 billion)
9. Toronto ($10 billion)
10. Shanghai ($10 billion)
11. Los Angeles ($10 billion)
12. Beijing ($8 billion)
13. San Francisco ($8 billion)
14. Chicago ($7 billion)
15. Taipei ($7 billion)
16. Sydney ($7 billion)
17. Stockholm ($6 billion)
18. Boston ($6 billion)
19. Moscow ($6 billion)
20. Frankfurt ($5 billion)
21. Melbourne ($5 billion)
22. Berlin ($5 billion)
23. Calgary ($5 billion)
24. Rio de Janeiro ($5 billion)
25. San Diego ($5 billion)
26. Hamburg ($4 billion)
27. Munich ($4 billion)
28. Miami ($4 billion)
29. Sao Paulo ($4 billion)
30. Manchester ($4 billion)